Market End Day's Trades In Gains

The Indian markets witnessed volatility today but remained in the green zone for most of the trading session. This was on the back of some buying in the beaten down stocks and a positive opening in the European markets. The Sensex and Nifty closed by 0.99% and 0.78% respectively. The markets remained positive despite the deepening domestic macro-economic situation, and therefore, the gains are not sustainable. The growth in 2011-12 has moderated significantly. Inflation based on the Consumer Price Index (CPI) for May 2012 rose to 10.36% from 10.26% in Apr.

The peer Asian markets closed in the red zone on the back of renewed concerns on the rising borrowing costs in Spain. The Hang Seng, Nikkei and Shanghai were down by 0.06, 0.75 and 0.66 respectively. With the positive election results in Greece yesterday, markets globally are witnessing a positive momentum. However, the focus has now shifted towards other ailing European countries that are facing serious debt problems.

After opening in the green zone, the European markets have turned volatile amid renewed fears on the Spanish bond auction. The Spain rising bond yield, which is hitting levels of 7.13% on 10-year bonds, will make the borrowing costs higher. Further, the markets are awaiting data from Germany for fresh clues on the extent of the Euro zone crisis. The US Fed Reserve meeting is also being eyed for possible market-friendly stimulus action. The major indices, FTSE and DAX, are up by 0.89% and 0.53% respectively, while CAC is down by 0.03%.

Dow Jones Futures is currently trading 21 points or 0.17% up at 12674, indicating a positive sentiment in the US markets.

Back home, the interest rate-sensitive sectors that got penalised after the RBI's monetary policy stance yesterday, were seen to be in buying mode today. Other than those, indices such as Oil & Gas, FMCG and HC were the major gainers and ended with gains of 2.14%, 1.58% and 1.13% respectively. IT was the only loser, marginally down by 1.09%.

Among the individual stocks, the tea stocks fell on reports of tea prices in India dropping at last week's auction after the supplies were raised significantly.

Of the Sensex shares, a few major gainers like ITC (2.04%), GAIL (1.83%) and ONGC (1.76%) edged higher today. However, Infosys closed down with losses of 1.29% after the company indicated that it will cut its dollar revenue guidance on account of currency volatility.

The market breadth, which indicates the overall health of the market, was positive for the day. Out of the 3126 stocks traded on the BSE, 1558 advanced, 1427 declined and 141 remained unchanged.